Cigarettes in Turkey

PROSPECTS

Combination of factors influence positive performance of cigarettes in 2018

Cigarettes in Turkey recorded an impressive recovery in retail volume terms in 2018 supported by a number of factors, despite an ongoing decline in smoking prevalence amongst the local population of adult smokers. After slowing growth for a number of years with rising unit prices, the cost of cigarettes stabilised at the end of the review period.

Notable increasing demand for premium, slims and flavour capsules

A number of trends were noticeable within cigarettes in 2018, including an increase in demand for premium brands, gaining retail volume share from both economy and mid-price bands. With stable unit prices, some consumers were prepared to migrate towards better quality cigarettes such as Marlboro, which recorded strong retail volume share and sales in 2018.

Short-lived recovery for cigarettes with price hike set to lead to declining demand

Despite the recovery recorded by cigarettes in 2018, this positive performance is set to be short-lived. The Turkish government is determined to drive down smoking numbers in the country and will introduce further tax increases, leading to higher unit prices.

COMPETITIVE LANDSCAPE

Philip Morris retains leadership with wide brand portfolio

Philip Morris retained its leadership of cigarettes in 2018, despite losing some retail volume share to close competitor British American Tobacco. Philip Morris benefits from an established brand portfolio with strong consumer loyalty for Chesterfield and Parliament.

British American Tobacco gains highest retail volume share

Second-ranked British American Tobacco was one of the strongest performers in 2018, gaining retail volume share from both leader Philip Morris and third-ranked JTI Tutun Urunleri San AS. This was due to the remarkable performance by Kent, which benefited from strong sales for a number of its subbrands; a newer line of Kent Direnc entered cigarettes in 2017, to record phenomenal retail volume growth in 2018, while Kent Switch is particularly appreciated by millennials with its blend of tobacco perceived as fashionable.

Some movement in positions below leaders

JTI Tutun Urunleri San AS (distributing for Japan Tobacco Inc) experienced a mixed performance in 2018. Its popular mid-price brand Winston gained leadership of overall cigarettes, forcing Parliament into third position.

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